Dean Baker: Wall Street Journal Finds Evidence that Employers Cannot Find Qualified Staff for Top Management Positions
Wall Street Journal Finds Evidence that Employers Cannot Find Qualified Staff for Top Management Positions | Beat the Press: The Wall Street Journal ran a piece on how some companies are unable to fill positions even when more than 14 million workers are unemployed. The article indicates that the management personnel used as sources are either not competent or not being truthful. All the people used as sources for the article complained that they were unable to find qualified workers. For example, Josh Williams, the chief executive of Gowalla, a social networking start-up, is quoted complaining that: "most people we want are employed somewhere already. We don't get a lot of applications coming in."
The way employers are supposed to deal with this situation is to offer a higher wage than their competitors in order to attract away good workers. Apparently Mr. Williams has not thought of this approach. Later, the article comments on the experience of Toll Brothers Inc. a major builder. It cites a senior vice president of human resources, who claims that it has taken six months to find qualified applicants for some of its IT and Web developer openings. Here also, raising the offered wage likely would have reduced the search time substantially. It will always be the case that employers will have difficulty attracting skilled workers to positions where they are offering below market wages. This seems to be the problem identified in this article, not a lack of qualified workers.